Search Results

No results found.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:Quantity Anomaly 

Working Paper
Technology Choice and the Long- and Short-Run Armington Elasticity

This paper studies the international transmission of productivity shocks when the Armington elasticity is endogenized through firms' technology choice. With costly adjustment, technology choice allows for a low short-run elasticity and a high long-run elasticity. I provide analytical results which demonstrate how technology choice provides a solution to the Backus-Smith puzzle - the observed negative correlation between relative consumption and the real exchange rate. I then embed technology choice in a quantitative model of international trade with heterogeneous firms and endogenous producer ...
Globalization Institute Working Papers , Paper 373

FILTER BY Bank

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

F41 1 items

PREVIOUS / NEXT